Rupee weakens to 94.74 against US dollar as Brent crude dips to $101

The Indian Rupee opened on a slightly weaker note against the US Dollar. The Rupee opened at 94.74 against the Dollar. This is higher than Wednesday’s close of 94.61 against the dollar.

This comes at a time when crude oil prices have eased. Brent crude hovered near $101 a barrel after sliding nearly 8% on Wednesday on reports that the United States and Iran were nearing a peace deal.

However, optimism cooled after US President Donald Trump said it was "too soon" for face-to-face talks with Tehran, while a senior Iranian lawmaker said the US proposal was more of a wish list than reality. Prices partly recovered from the session low of $96.75.

Also Read: Mitessh Thakkar's stock picks for the day: Buy Bajaj Auto, Biocon, DLF, Bajaj Finserv

An Iranian foreign ministry spokesperson cited by Iran's ISNA news agency said Tehran would convey its response. Trump said he believed Iran wanted an agreement.

On Wednesday, US stocks increased as the dollar and US Treasury yields declined.

According to a Reuters report, a "large part" of the optimism about a possible US-Iran deal was priced in late yesterday.

The rupee and oil-importing India would both benefit greatly from a decline in oil prices. Economists have lowered rupee projections, raised inflation expectations, and downgraded growth outlooks as a result of the run-up over the last two months.

Meanwhile, the Indian markets are moving on a volatile path after opening marginally in the green. The Nifty has moved around the 24,300 mark, swinging between red and green in a 50-point range.